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We propose a novel decomposition framework for the distributed optimization of general nonconvex sum-utility functions arising naturally in the system design of wireless multiuser interfering systems. Our main contributions are: i) the…

Information Theory · Computer Science 2016-11-18 Gesualdo Scutari , Francisco Facchinei , Peiran Song , Daniel P. Palomar , Jong-Shi Pang

We introduce a linear space of finitely additive measures to treat the problem of optimal expected utility from consumption under a stochastic clock and an unbounded random endowment process. In this way we establish existence and…

Probability · Mathematics 2008-12-10 Gordan Zitkovic

We revisit the optimal investment and consumption problem with proportional transaction costs. We prove that both the value function and the slopes of the lines demarcating the no-trading region are analytic functions of cube root of the…

Portfolio Management · Quantitative Finance 2013-09-19 Jin Hyuk Choi

In an incomplete model, where under an appropriate num\'eraire, the stock price process is driven by a sigma-bounded semimartingale, we investigate the behavior of the expected utility maximization problem under small perturbations of the…

Probability · Mathematics 2020-02-11 Oleksii Mostovyi

In this paper we consider a mass optimization problem in the case of scalar state function, where instead of imposing a constraint on the total mass of the competitors, we penalize the classical compliance by a convex functional defined on…

Optimization and Control · Mathematics 2023-04-11 Giuseppe Buttazzo , Maria Stella Gelli , Danka Lučić

Automated market makers with concentrated liquidity capabilities are programmable at the tick level. The maximization of earned fees, plus depreciated reserves, is a convex optimization problem whose vector solution gives the best provision…

Portfolio Management · Quantitative Finance 2024-05-30 Corinne Powers

We study the utility maximization problem for power utility random fields in a semimartingale financial market, with and without intermediate consumption. The notion of an opportunity process is introduced as a reduced form of the value…

Portfolio Management · Quantitative Finance 2010-11-03 Marcel Nutz

This paper discusses the problem of maximizing the total data transmission utility of the computer network. The total utility is defined as the sum of the individual (corresponding to each node in the network) utilities that are concave…

Optimization and Control · Mathematics 2022-01-31 Dmitry Pasechnyuk

We consider an infinite dimensional optimization problem motivated by mathematical economics. Within the celebrated "Arbitrage Pricing Model", we use probabilistic and functional analytic techniques to show the existence of optimal…

Mathematical Finance · Quantitative Finance 2017-03-10 Miklos Rasonyi

Separable convex optimization problems with linear ascending inequality and equality constraints are addressed in this paper. Under an ordering condition on the slopes of the functions at the origin, an algorithm that determines the optimum…

Information Theory · Computer Science 2011-07-22 Arun Padakandla , Rajesh Sundaresan

We consider a deterministic continuous time model of monopolistic firm, which chooses production and pricing strategies of a single good. Firm's goal is to maximize the discounted profit over infinite time horizon. The no-backlogging…

Optimization and Control · Mathematics 2016-01-19 Dmitry B. Rokhlin , Georgii Mironenko

Large scale multiagent systems must rely on distributed decision making, as centralized coordination is either impractical or impossible. Recent works approach this problem under a game theoretic lens, whereby utility functions are assigned…

Computer Science and Game Theory · Computer Science 2021-02-10 Rahul Chandan , Dario Paccagnan , Jason R. Marden

We study existence, uniqueness and computability of solutions for a class of discrete time recursive utilities models. By combining two streams of the recent literature on recursive preferences---one that analyzes principal eigenvalues of…

Economics · Quantitative Finance 2019-04-24 Jaroslav Borovicka , John Stachurski

We introduce a price impact model which accounts for finite market depth, tightness and resilience. Its coupled bid- and ask-price dynamics induce convex liquidity costs. We provide existence of an optimal solution to the classical problem…

Mathematical Finance · Quantitative Finance 2018-04-23 Peter Bank , Moritz Voß

The concave utility in the Network Utility Maximization (NUM) problem is only suitable for elastic flows. However, the networks with the multiclass traffic, the utility of inelastic traffic is usually represented by the sigmoidal function…

Systems and Control · Computer Science 2012-04-17 Phuong L. Vo , Nguyen H. Tran , Choong Seon Hong

We solve the problem of optimal liquidation with volume weighted average price (VWAP) benchmark when the market impact is linear and transient. Our setting is indeed more general as it considers the case when the trading interval is not…

Trading and Market Microstructure · Quantitative Finance 2019-01-16 Alexander Barzykin , Fabrizio Lillo

In an incomplete Brownian-motion market setting, we propose a convex monotonic pricing functional for nonattainable bounded contingent claims which is compatible with prices for attainable claims. The pricing functional is defined as the…

Pricing of Securities · Quantitative Finance 2008-12-18 Johannes Leitner

We explore martingale and convex duality techniques to study optimal investment strategies that maximize expected risk-averse utility from consumption and terminal wealth. We consider a market model with jumps driven by (multivariate)…

Portfolio Management · Quantitative Finance 2015-09-22 Mauricio Junca , Rafael Serrano

We consider the problem of utility maximization with exponential preferences in a market where the traded stock/risky asset price is modelled as a L\'evy-driven pure jump process (i.e. the driving L\'evy process has no Brownian component).…

Probability · Mathematics 2016-02-02 Carla Mereu , Robert Stelzer

We consider markets consisting of a set of indivisible items, and buyers that have {\em sharp} multi-unit demand. This means that each buyer $i$ wants a specific number $d_i$ of items; a bundle of size less than $d_i$ has no value, while a…

Computer Science and Game Theory · Computer Science 2015-03-13 Ning Chen , Xiaotie Deng , Paul. W. Goldberg , Jinshan Zhang